Higher pension: Retirees from defunct organizations clueless in Nagpur

NAGPUR: Even as a section of workers covered under the Employees Provident Fund Organization (EPFO) now have a chance to get higher pension based on their actual pay, those retired and whose employing organizations have closed down are facing a handicap.
Under the current format, a joint option has to be furnished by the employee and employer. In a number of cases, the establishments itself have shut down making it difficult to trace down the employers. This keeps employees of such organizations, who are eligible to get higher pension, out of the benefit. The issue has been raised by EPS 1995 coordination committee. The Nagpur-based organization represents pensioners under EPS 1995 across the country.
The higher pension is now being offered following a Supreme Court judgment of November last year. This is applicable to persons who have retired after September 2014, and existing employees. Those who have retired prior to September 2014 but have given an option of higher pension based on their actual salary before retiring can also apply.
“However, the joint option clause remains a stumbling block,” says Prakash Pathak of the coordination committee. A letter highlighting the problem has been sent by the committee to the Union labour minister, Central Provident Fund commissioner and the chairman of EPFO’s board of trustees.
The committee claims that as much as 40% of the organizations have shut down. A proof of remittance over and above the wage ceiling is also required to be submitted. “This is not possible if the employer is no traceable,” said Pathak.
Pathak said he is getting calls from retired persons across the country seeking a clarification on their status if the organization where they worked is now shut down.
A higher pension can be availed if the employer has been contributing on the actual wages which are over and above the ceiling which currently is Rs15,000. It was earlier Rs6,500. A major chunk of the employers’ contribution goes to the pension fund. However the remittance is capped to a maximum salary of Rs15,000. The incremental deposit goes to provident fund account. Now, by readjusting the additional amount from provident fund account, a higher pension can be availed. An option has to be sent online till March 4.
Pathak said the ruling only benefit a select category or employees. The government should amend the law to ensure higher pension to all EPS subscribers. The EPS covers employees of private sector and PSUs.